Pita bills self as ‘executor’

Denies holding iTV shares as family heir

Move Forward Party leader Pita Limjaroenrat takes a selfie with supporters during his tour of Lampang where the party secured a clean sweep in the May 14 election. (Photo: Move Forward Party)
Move Forward Party leader Pita Limjaroenrat takes a selfie with supporters during his tour of Lampang where the party secured a clean sweep in the May 14 election. (Photo: Move Forward Party)

Move Forward Party (MFP) leader Pita Limjaroenrat has found himself in an even tighter spot concerning his ownership of media shares while running in a national election, as he recently admitted to holding shares in iTV as executor of his father’s estate — before then transferring them to other relatives in a bid to avoid more legal complications.

Mr Pita admitted last week he transferred the 42,000 shares to his kin to pre-empt any move blocking his rise to power. Earlier, he said he had been holding the shares as executor of his late father’s inheritance, not as an heir himself.

Niwatchai Kasemmongkol, secretary-general of the National-Anti Corruption Commission (NACC), said Mr Pita submitted a record of his shares in iTV to the agency after he became an MP following the 2019 general election.

He said the MFP leader also attached a copy of a court order appointing him as executor of his late father’s inheritance, but the NACC could not verify the document because the court no longer has it in its records.

Mr Niwatchai said the agency is required to recheck documents with the authorities but it cannot find a record of it. The document is almost two decades old.

He said Mr Pita would be asked to submit additional documents to prove his claim that he held the shares as executor of the family’s inheritance.

Under the law, all assets and debts declared by political office-holders must belong to the holders when they declare them.

“If an individual holds shares as an executor, it is unclear how many shares he will inherit and the shares are not allocated to him in his capacity as an heir,” said Mr Niwatchai.

Asked if an order by the Constitutional Court would clear up the doubts surrounding Mr Pita’s share-holding case, Mr Niwatchai said the NACC is not authorised to rule on this matter or Mr Pita’s qualifications as an election candidate.

He said the NACC would hand over Mr Pita’s asset and debt declaration to the Election Commission (EC) if requested.

Mr Pita has yet to submit his assets and debts after vacating office as an MP and he has until June 18 to file the document, according to the NACC secretary-general.

Former MPs have up to 60 days after vacating office to submit declarations, or by May 19. However, the deadline has been extended to June 18 this year.

Asked if Mr Pita is required to declare the transfer of shares in the fresh declaration, Mr Niwatchai said the MFP leader does not have to, but the NACC may ask him to produce proof that he no longer holds the shares.

On the claim that Mr Pita guaranteed loans but did not declare them to the NACC, Mr Niwatchai said that as long he has not been ordered to repay the loan, he is not required to declare it.

Earlier, the media reported Mr Pita had guaranteed loans but not declared them to the NACC.

Former election commissioner Somchai Srisutthiyakorn posted on Facebook on Wednesday that Mr Pita’s decision to transfer his iTV shares indicated the MFP leader previously owned them, rather than that he was “abandoning” his inheritance.

He cited a share transfer document submitted to the EC by political activist Ruangkrai Leekitwattana to support his claim.

The document showed Mr Pita transferred the shares to his brother, Pasin, on May 25.

Mr Somchai said that based on the document, there seemed to be only one question left — whether iTV still legally ranks as a media organisation.

In the document, Mr Pita did not identify himself as the executor of the family’s inheritance.

Meanwhile, in a thank-you speech delivered to MFP supporters in Lampang, Mr Pita said public participation would drive change.

“Be part of politics. Be part of change,” he said.

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‘Political vacuum’ sparks jitters

Delayed govt could ‘slow down’ economy

On the same page: Move Forward Party leader Pita Limjaroenrat puts on a jacekt of the Federation of Thai SMES on Tuesday as Sangchai Theerakulwanich, the federation president, right, looks on. (Photo: Varuth Hirunyatheb)
On the same page: Move Forward Party leader Pita Limjaroenrat puts on a jacekt of the Federation of Thai SMES on Tuesday as Sangchai Theerakulwanich, the federation president, right, looks on. (Photo: Varuth Hirunyatheb)

The private sector has expressed concern that any delay in the formation of a new government may have an adverse impact on the economy.

Sanan Angubolkul, chairman of the Thai Chamber of Commerce, said Thai and foreign investors are keeping a close watch on political parties’ bids to form a new government.

“The private sector would like a new government to be formed quickly. Any delays could slow down the economy,” Mr Sanan said.

“It is estimated that the new government may not be able to take shape in August, and the bid to form a government may drag on until September,” he added.

He went on to say that Chinese investors have made up the largest number of foreign companies seeking promotional privileges from the Board of Investment.

Chinese investors are also monitoring the formation of a new government and are waiting to see how it will implement its policies and whether they affect foreign investment, Mr Sanan said.

“The new government should be formed as quickly as possible for the country’s best interests,” he said.

Regarding relations between Thailand and Saudi Arabia, investors from the two countries are seeking to jointly invest in several projects while more than 200,000 tourists from Saudi Arabia are expected to visit Thailand this year, Mr Sanan said.

Sanan: Investors are watching

Meanwhile, Move Forward Party leader and prime ministerial candidate Pita Limjaroenrat on Tuesday led the party’s economic team to meet for talks with Sangchai Theerakulwanich, president of the Federation of Thai SMEs.

Mr Sangchai said he was glad that he and Mr Pita exchanged ideas on how to steer policies that will benefit the grassroots economy.

Mr Pita also wrote on the federation’s visitors’ book that “I am glad to work with all Thai SMEs to build a strong and equal economic system to promote equality for everyone”.

Supant Mongkolsuthree, deputy leader of the Thai Sang Thai Party, on Tuesday voiced concern about debt problems and bad loans among the public, particularly car loans.

During the first five months of this year, more than 90,000 cars were seized by finance companies from customers who defaulted on car loans, said Mr Supant, a former chairman of the Federation of Thai Industries.

Currently, there are unpaid car debts worth more than 180 billion baht, he said, adding that the National Credit Bureau recently warned that over the next four months, about 1 million cars might be seized from debtors who have defaulted on loans.

As a result, finance companies will be reluctant to extend loans, and this will affect the car market in the future, he said.

“The new government will have to solve this loan problem urgently. The longer a vacuum of power remains, the more problems people will face. Debts will increase, and there will be fewer opportunities to create new income streams.

“The economy has not been given a stimulus since the election,” he said.

The public and businesses have been pressing the Election Commission (EC) to endorse the results of the election as soon as possible, as the prolonged political uncertainty is hurting investors’ confidence in the country and, thus, the economy.

The coalition partners of the Move Forward Party (MFP), which is expected to lead the formation of the next government as it won the most votes in the May 14 election, are also pushing the EC to endorse the results quickly so they can get on with forming a government.

However, EC chairman Ittiporn Boonpracong previously said the results are likely to be endorsed well ahead of the mid-July deadline.

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BMA’s Green Line debt ‘can’t be solved’

Prayut says caretaker cabinet’s hands are tied and new government will have to make a decision

Commuters board a BTS train at the Khu Khot station on the Green Line extension in Pathum Thani. (Photo: Apichart Jinakul)
Commuters board a BTS train at the Khu Khot station on the Green Line extension in Pathum Thani. (Photo: Apichart Jinakul)

The overdue payment of around 50 billion baht that the Bangkok Metropolitan Administration (BMA) owes to Bangkok Mass Transit System Plc (BTSC) will have to wait for a new government to resolve, the caretaker government said on Tuesday.

“We wish we could resolve this problem. We’ve tried to have it taken care of but now we have to admit it can’t be solved. Lately, multiple factors have prevented that from happening,” Prime Minister Prayut Chan-o-cha after he met with Interior Minister Anupong Paojinda to discuss the Green Line debt, just after the weekly cabinet meeting.

Gen Prayut did not elaborate on the factors he alluded to that were impeding the government’s attempt to resolve the debt issue.

However an informed source said one was the Election Commission’s regulation limiting the ability of a caretaker cabinet to approve large budgets.

BTSC, which operates the Green Line, hopes to receive a first instalment — or about 20 billion baht — when the Bangkok Council convenes in early July, said the same source.

Bangkok governor Chadchart Sittipunt met with BTSC chairman Keeree Kanjanapas on Monday and said he would request the BMA council’s approval of the proposed 20-billion-baht payment, said the source.

The 50-billion-baht debt has been incurred through Krungthep Thanakom (KT), a business arm of the BMA, which hired BTSC to install the electrical and mechanical systems of the Green Line extensions and operate the electric rail service, said the same source.

Since the BMA lacks the funds to pay off the entire debt, the only option is to defer a decision on the debt payment until the new government takes office, Gen Anupong said.

He said some measures will have to be adopted to ease the burden shouldered by BTSC while it continues to operate the Green Line.

Mr Chadchart said the BMA had requested via the Ministry of Interior a decision from the caretaker cabinet on the debt payment issue, but he wasn’t sure if ministers were planning to discuss it this week.

Deputy Prime Minister Wissanu Krea-ngam said the cabinet had not yet received any such request. He said the BMA must first decide what action should be taken on the overdue debt payment and then submit it to the cabinet for endorsement.

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“Hong Kong to emerge as stock exchange of choice” – Dealmaking experts | FinanceAsia

Former Securities and Futures Commission (SFC) senior director, Roger Cheng, is set to join UK-headquartered law firm, Linklaters, at its Hong Kong base from August.

The move follows his nearly five years of experience at the special administrative region’s (SAR) financial regulator, where Cheng oversaw the operations of the Takeovers Team. The law firm’s announcement pointed to the instrumental role that he played during this time, developing Hong Kong’s takeovers and mergers policy, as well as driving forward other listing-related progress.

Prior to his tenure with the SFC, Cheng spent 13 years at Slaughter and May.

Offering some thoughts around trends affecting dealmaking in Hong Kong and China, Betty Yap, Linklaters partner and global co-head of the firm’s Financial Sponsor Group shared that there had been a noticeable rebound of M&A activity in the region post-pandemic, though activity has not yet returned to pre-pandemic levels.

“Inbound investment into mainland China is still somewhat marred by geo-politics and recent regulatory changes,” she told FinanceAsia, adding that her team is optimistic around sectors less affected by national security concerns, such as the consumer segment.

“Interest from Middle Eastern investors in M&A opportunities in China has increased as relations between [both] continue to strengthen.  We are also seeing a number of sales by private equity (PE) sponsors in the market, as investments made in prior years mature,” she continued.

Her colleague, Hong Kong-based partner, Xiaoxi Lin, noted that recent financial stress in the Chinese real estate market has presented interesting M&A opportunity in Hong Kong, through the sale of prime commercial and residential properties to generate cashflow and service restructuring debts.

“A cocktail of factors including the distress in the PRC real estate sector, rising interest rates, and regulatory restrictions have meant that commercial banks are reducing their exposure to the real estate sector, including loans secured by residential and commercial properties,” Yap said.

“Credit funds – who are not subject to the same regulatory restrictions – are stepping into this funding gap,” she added, highlighting that while the current elevated interest rate environment means that borrowing costs are higher, credit funds are able to provide financing on the back of higher loan-to-value (LTV) ratios and can offer swift deal execution.

IPO dynamics

In terms of the IPO landscape ahead, Lin told FA, “Market participants are cautiously expecting a stronger HK IPO market this year with more companies listed than in 2022”.

Corporate partner, Donnelly Chan, added that Hong Kong’s recent introduction of the Chapter 18C regime – which reduces the listing requirements threshold for firms operating in new economy industries – together with recent China Securities Regulatory Commission (CSRC) reforms, is likely to support the market’s advancement.

“The track record and proven success of the pre-revenue Biotech listing regime and the weighted voting rights (WVR) listing regime since their introduction in 2018, coupled with the concession route for Greater China companies to secondary list on the main board has demonstrated the Hong Kong market’s flexible approach and readiness to evolve and explore opportunities,” he told FA.

Chan added that, as a result, it is hoped Hong Kong’s bourse will become “the stock exchange of choice” compared to other regional fundraising hubs.

Opportunity elsewhere

However, Yap is bullish on opportunity across the full breadth of Asian markets.

“For the remainder of 2023, we believe there will be continued interest in M&A opportunities in Asia,” she told FA.

“As inbound investment interest in China remains mixed given geo-politics, other single jurisdiction markets in Asia that can provide scale will be of interest to financial sponsor investors looking for efficiency in the deployment of capital.”

She pointed to markets such as India and Japan as benefitting from investor appetite – with the latter offering attractive costs “because of the lower yen”.

Yap added that Southeast Asia will continue to draw capital: “in particular Indonesia, with its relatively young demographics and the consumption power of its growing middle class.”

In terms of sectors, she noted that energy transition will remain of utmost importance “with interest in targets from renewables to electric vehicles to batteries to de-carbonising assets,” while digital infrastructure and data centre investment will continue to support the rise of e-commerce.

In the Linklaters release, head of Corporate, Sophie Mathur shared, “We are delighted to welcome Roger to our corporate practice. We are confident that his insights into takeovers and mergers regulations and policy matters will be of immense value-add to our clients when navigating take-privates and other public market transactions.”

Unlike the typical structure of a corporation, Linklaters employs a limited liability partnership which enables the firm’s partner leadership-base to make long-term strategic decisions for the business together.

Cheng’s appointment follows other key hires in Asia in recent months, including the appointment of Yoshiyuki Asaoka as corporate partner in Japan. In June 2021, William Liu was appointed as regional managing partner for Asia Pacific.

 

¬ Haymarket Media Limited. All rights reserved.

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BTSC confident of Green Line debt payment

BMA owes operator of Skytrain B50bn

Bangkok governor Chadchart Sittipunt welcomes Keeree Kanjanapas, chairman of Bangkok Mass Transit System Plc (BTSC), the operator of the BTS Skytrain, before they hold talks on the debts City Hall owes the company for operations and maintenance services along the Green Line extensions.  Apichart Jinakul
Bangkok governor Chadchart Sittipunt welcomes Keeree Kanjanapas, chairman of Bangkok Mass Transit System Plc (BTSC), the operator of the BTS Skytrain, before they hold talks on the debts City Hall owes the company for operations and maintenance services along the Green Line extensions.  Apichart Jinakul

Keeree Kanjanapas, chairman of Bangkok Mass Transit System Plc (BTSC), expressed confidence on Monday the Bangkok Metropolitan Administration (BMA) would service overdue debts incurred through the operation and maintenance of the Green Line extensions.

After meeting with Bangkok governor Chadchart Sittipunt, Mr Keeree said talks with the governor were promising, and he expected the repayment of 20 billion baht from the BMA.

According to Mr Keeree, the BMA owes about 50 billion baht to BTSC, the operator of the Green Line, also known as the BTS Skytrain.

The first chunk totalling 20 billion baht, is for operations and maintenance costs of the Green Line extensions, while the other, estimated at 30 billion baht, is for electrical and mechanical installations required to operate the system.

He said he is confident the company would be repaid because Mr Chadchart had promised to submit the issue to Bangkok City Council for consideration next month.

As for the 30-billion-baht portion, he said it would have to be submitted to the cabinet for approval, noting the caretaker government should be able to reach a decision as Transport Minister Saksayam Chidchob, who disagrees with it, is being suspended from duty.

“I hope the caretaker cabinet can make a decision. If it can’t, the new government should. We’re not worried because we have contracts hiring us to operate and maintain the services,” he said.

Mr Chadchart said on Monday the BMA has funds to service the debts, but it has to make sure repayment is in line with the law and budget regulations.

“We sympathise with the operator because they’re shouldering massive costs providing the train services. But repayment must be done in accordance with due legal processes,” he said.

The issue will be submitted to the Bangkok City Council for consideration when it reconvenes, he said.

BTSC took the debt dispute to the Central Administrative Court, which ruled in its favour last September. The debt repayment would cover two parts — the first for the operation and maintenance of the first extension and the other for the same costs for the second extension.

The first extension comprises the On Nut-Bearing and Saphan Taksin-Bang Wa sections, while the second extension comprises the Bearing-Samut Prakan and Mo Chit-Saphan Mai-Khu Khot lines.

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Middle Powers face down the Great Powers at Astana forum

At the Astana International Forum on June 8-9, Kazakhstan launched a new diplomatic initiative that calls for dialogue among the Middle Powers as a way “to amplify voices for peace, progress and solidarity” at a time of heightened polarization and unprecedented geopolitical divisions across the world.

Kazakh President Kassym-Jomart Tokayev’s keynote address at the forum’s plenary session set the stage for the more than 4,000 participants when he said that “for the global [international] system to survive, it must work for everyone, promoting peace and prosperity for the many rather than for the few.” 

His words reinforced his past declarations on the matter: “We all know that global peace and stability are currently under threat by tensions between major world powers.” 

It takes courage to utter those words with CNN’s and the British Broadcasting Corporation’s cameras rolling. 

The forum’s agenda was comprehensive, covering topics from food security, water management and capital flows to the role of the United Nations, economic integration, and the need for the Middle Powers to embrace responsible statecraft because of its absence elsewhere. 

Measured by the scope of international media coverage, Kazakhstan has once again come through with the goods, garnering the attention of the international community at a time of crisis. 

Presidents, prime ministers, academics and businesspeople attended the forum. Common sense permeated the discussions, rather than the usual bombast common at so many other confabs. 

While Eurasian integration featured large, the need for Middle Power agency in foreign affairs emerged as a critical way to influence the Great Powers. There were even open calls for the resurrection of the Non-Aligned Movement birthed at the 1955 Bandung Conference, or something similar. 

Not unexpectedly, the audience came alive when Mulatu Teshome, former president of Ethiopia, and Željka Cvijanović, chairwoman of the Presidency of Bosnia and Herzegovina, highlighted the dangers of foreign meddling in their respective and/or neighboring countries.

The Ethiopian Herald, for example, ran an article titled “Pan-Africanism enhances Africa’s global participation,” which reported what Teshome said: “External interference would fuel problems, and we don’t want the situation of Yemen and Libya replicated in our region.”  

On the sidelines of the forum, delegates with whom this writer spoke made it clear that the Great Powers should stop demanding that Middle Powers take sides in their problems.

One was reminded of what Indian External Affairs Minister Subrahmanyam Jaishankar said not that long ago: “Europe has to grow out of the mindset that Europe’s problems are the world’s problems, but the world’s problems are not Europe’s problems.”

The forum’s primary focus highlighted that peace must be predicated on smart and respectful diplomatic engagement based on the founding principles of the United Nations rather than on ideologically driven one-upmanship, lingering neocolonial attitudes, or a preponderance of power in a struggle for limited natural resources in a fiercely competitive and merciless world. 

Geopolitical ‘bloc’ mentalities

Tokayev said, “We are witnessing the return of earlier ‘bloc’ mentalities unseen for 30 years. The forces of division are not purely geopolitical. They are also motivated by economic undercurrents.

“Economic policy itself is openly weaponized. These confrontations include sanctions and trade wars, targeted debt policies, reduced access [to] or exclusion from financing, and investment screening. Together these factors are gradually undermining the foundation upon which rests global peace and prosperity over recent decades: free trade, global investment, innovation, and fair competition.” 

Tokayev continued: “This [approach to foreign policy] in turn fuels social unrest and division within states and tensions between them. Rising inequality, social divides, widening gaps in culture and values: all these trends have become existential threats.” 

These are serious words coming from a seasoned diplomat and head of state, and they captured much of the spirit at the forum, at least from representatives of the Middle Powers. The delegates agreed that it’s time for the Great Powers to engage all nations as adults rather than as pawns in a larger game. 

Tokayev also confidently reaffirmed the following: “I would like to emphasize the key role of Kazakhstan in the Belt and Road Initiative, which promotes economic development and intraregional connectivity.” Astana will deal with Beijing, like it or not, if it suits Kazakhstan’s interests and the common good of the region.

Be that as it may, in recent years, Great Power hubris – perhaps unbeknownst to its cheerleaders – has become dangerously counterproductive for peace and stability because it has reduced diplomacy to a dodgy game of intrigue and ambition that abhors compromise and feeds off starry-eyed ideologies and implacable moralizing. 

Kazakhstan and the Middle Powers

Tokayev managed to bring together most of the Middle Powers from Asia, Africa and the Middle East in Astana, though Latin America was poorly represented. The delegates signaled that they are no longer going to sit around idly and watch whole regions of the world sink into chaos and conflict because of showdowns and face-offs between Great Powers. 

The forum served as a welcome alternative to the recent Hiroshima Group of Seven Summit and its members’ obsession with evangelical-like moralizing about the promotion of open, transparent, resilient, and sustainable societies, while mostly skipping over the hard business of improving the very economic conditions needed for genuine human development. 

In Astana, adherents to a unipolar worldview were few and far between. The forum confirmed that an agenda for global peace and security requires multilateral responses and diplomatic compromise rather than pitting one bloc against another, weaponizing economic policy and finance or by playing one country’s national interests off against another’s. 

As Tokayev reaffirmed at the Astana International Forum, “I am optimistic that constructive discussions in the next two days can begin to move us towards potential solutions and further collaboration. Let me end with a gentle warning. To foster meaningful conversation and cooperation, open-mindedness, tolerance, and compromise are required.” 

The Astana International Forum is planned take place every year. Let us hope that the Great Powers will listen. 

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West has made it easy for China in Latin America

It has long been the case that almost everything that happens in the Latin American region has something to do with China.

This relationship began with commodity trading, when China became the world’s main buyer after putting its economy on steroids to protect it from the effects of the global financial crisis in 2008.

China soon managed to turn the tables by flooding Latin American countries with its exports of consumer goods, and more recently also of intermediate products such as machinery, electronic components, and many others, by competing directly with the United States and, above all, with a Europe that for decades had benefited from its global export power.

When most Latin American countries began to accumulate trade deficits with the Asian giant, China began to develop a second level of economic influence – direct investment.

Despite China’s competitiveness in the manufacturing sector, it has not been these companies that have started to produce in Latin America but rather the electricity sector, as well as the search for control of natural resources.

Beyond direct investment, China’s share of infrastructure construction in the region has been financed by loans from its big development banks, which have only increased Latin American debt, this time with China. In fact, in some cases the accumulation of debt has been so rapid that it has ended up in the need to restructure it, as the case of Ecuador shows.

Diplomatic advances

Having reached a much broader level of economic relations, we should not be surprised that China has also been able to advance its diplomatic relations with much of the region. Indeed, in recent years, of the Latin American countries that still had diplomatic relations with Taiwan, several have turned to Beijing, with Panama as a prominent case because of its strategic importance derived from the Panama Canal, and, more recently, Honduras.

The uncertainties about the future of diplomatic relations with Taiwan of the few remaining countries are enormous, as reflected in the evolution of the recent elections in Paraguay.

But it’s not just Taiwan. Political trends in the region are undoubtedly being influenced by China, as evidenced by Luiz Inácio Lula da Silva’s election campaign in Brazil and his foreign policy. More generally, the winds of left-wing populism are getting stronger, with a view to an alternative model of development in which the state plays a greater role.

While China’s influence may seem unstoppable on its own, the reality is that both the US and the European Union have made it very easy. Both economic blocs have not taken seriously enough the importance of reaching trade and investment agreements with Latin America and have been losing influence in the region.

In the case of the US, the financial crisis undoubtedly left a dent in the average citizen’s appreciation of the benefits of international trade. In the EU, the lack of an agreement with Mercosur after more than 20 years of negotiations is paradigmatic of the difficulties that an economic area, rather than a sovereign one, has in a world where international trade rules are broken and member countries are not willing to make the necessary concessions to move forward.

Beyond trade agreements, it seems difficult to think how the EU can maintain an influence commensurate with its economic size – which, incidentally, is also shrinking in relative terms – with an institutional framework so complicated that it opens us up to the status quo.

It is easy to blame China for Western powers’ loss of influence in the Latin American region, but the reality is that Beijing has only taken advantage of the opportunity the West has carelessly abandoned.

Looking ahead, the question is whether the West’s change of strategy toward China, which advocates reducing the risks inherent in its critical dependence on the Asian giant for some key sectors, such as the energy transition, could also have consequences for the West’s strategy toward Latin America, a region with very important ties historically and culturally, but also with abundant critical raw materials for the energy transition.

Alicia Garcia-Herrero is chief economist for Asia-Pacific at Natixis and senior research fellow at Bruegel. Follow her on Twitter @Aligarciaherrer.

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Agutaya archipelago doctor who cared for 13,000 people on her own

Dr Alena with Eleuthera AbusBBC/Virma Simonette

When 99-year-old Eleuthera Abus lifts her right arm, she winces as the broken bones move. It’s been six months since her fall.

“All I can do is manage her pain,” says Alena Yap, the 28-year-old doctor who is examining her on her porch. “She really needs to have the bone pinned. But the family is refusing to take her to hospital.”

Eleuthera’s daughters are not heartless. They are poor.

The nearest surgical facility is hundreds of miles away across the sea from the tiny island of Diit where they live. It’s one of a cluster of islands that make up the Agutaya archipelago, stranded in the middle of the Philippines’ Sulu Sea.

For the 13,000 or so people who live here, Dr Alena, as they call her, is the only doctor. Petite, with glasses and long hair tied back in a ponytail, she always wears a broad smile that masks quiet determination.

There is only one island in the archipelago she does not visit – Amanpulo, named after the luxury resort on it, which has reportedly hosted Tom Cruise and Beyoncé. On a clear day, it’s visible from the beaches of Diit, just 20km (12 miles) away.

Dr Alena arrived just before the coronavirus – and learned to live with the death threats that came when she insisted people isolate. But the pandemic that swallowed the world was far from her only challenge in this oft-forgotten corner of the Philippines. She battled new diseases and old, and came up against her country’s biggest challenges. She says she came to Agutaya to make “real changes” – but she left deeply disillusioned.

These remote, volcanic islands are not where you expect to find a graduate of the country’s top medical school, who had spent all her life in Manila, the teeming Philippine capital. Unlike so many of her peers who have left to seek careers in Australia, America and Britain, Dr Alena volunteered to join a government programme that sent her here, to one of the poorest municipalities in the country.

Covid comes calling

The main island of Agutaya is a two-and-half day journey from Manila. It includes one flight, followed by a sleepless 15-hour night crossing on an open-deck ferry from the port city of Iloilo to a bigger island called Cuyo. Then the only way in and out of Agutaya is a drenching, two-hour roller coaster ride in an outrigger canoe.

View from a drone of the waters around Diit island

BBC/ VIrma Simonette

As the skilled boatman guides the outrigger across the reef and into the shallows, Agutaya looks like a piece of paradise. Below the palm-fringed shoreline, a broad swathe of white sand stretches in each direction. Colourful outrigger canoes bob around on water so clear they could be floating in mid-air.

But geography is both a blessing and a curse. Scattered over hundreds of square kilometres of sea, the dozen or so islands that make up the archipelago are cut off for days, even weeks, when the monsoon comes, winds in tow. Covered with dense forest, the hillsides sit atop large fields of basalt boulders. There is little tillable soil. The islanders rely almost entirely on the ocean.

Dr Alena made her first crossing to Agutaya in February 2020. “When I started here, I was 26 and a lot of people would mistake me for a high school student,” she says with a chuckle. “People wouldn’t believe I was a doctor.”

Her first challenge arrived within a month when the coronavirus sent the Philippines into a lockdown. The islands were sealed off.

“The first year wasn’t too bad,” Dr Alena says. “There weren’t any local cases. But the second year [2021], that is when the government allowed everyone to travel back to their hometowns. Suddenly we had people coming back from as far away as Manila.”

Dr Alena was in charge of enforcing their quarantine. “When people learned they would be quarantined they reacted violently,” she says. “I received death threats. People said they wanted to shoot me.”

She understood why. People here live day to day. What they catch in the morning they eat for dinner. If they couldn’t leave their homes to fish, they would go hungry.

So far from being embraced by the local community, Dr Alena, who had left her fiancé in far-away Manila, was now resented as a government enforcer. “There were days when I couldn’t do anything but cry. There were a lot of tears,” she says.

To ease the loneliness she began adopting dogs. Bruno is large with a big tail that never stops wagging, while Vigly is small and shy. They follow her everywhere.

“I spent a lot of time going to the beach with them and watching the sunset. I also started to draw. My pictures aren’t any good, but it’s a type of art therapy.”

Dr Alena Yap

BBC/Virma Simonette

The next challenge emerged when the vaccines started to arrive in the summer of 2021.

“We had to go house to house to every island baranguay [village],” Dr Alena says. “The farthest island is nearly three hours away by boat, and many people can’t afford the fare [to come to the clinic]. So they wouldn’t come.”

Gruelling as it was, the distance wasn’t the only problem: “There was a lot of hesitancy, a lot of fake news about the vaccines being bad or that they can kill people. A lot of people get their news from social media here, and they were not getting the facts.”

By autumn 2022, the threat from Covid had begun to abate. Despite the resistance, the vaccine rollout was successful. Only eight islanders across the archipelago had died of the virus.

But that brought little respite.

The ‘medicine lady’

A line starts to form on every weekday morning outside the main clinic on Agutaya while the daily meeting between Dr Alena and her team is still under way.

On that day, first in line is a man in his 50s who has had a suspected stroke.

“Before I came here, I thought everything would be fresh and organic,” Dr Alena says, laughing at her own naivete. “But it’s very difficult to get a nutritious diet here.”

For one, locals salt and dry their fish, leading to high blood pressure. Diabetes is also common because it’s easier to find soft drinks than clean water.

A kid walking to school in Diit island

BBC/ Virma Simonette

A sign at the entrance to the clinic announces the other major health problem: “sputum sampling” for tuberculosis or TB.

Dr Alens says they recorded 45 cases in 2022, but many more go undiagnosed.

A bacterial infection, TB is fatal if left untreated. It killed millions yearly until a combination of vaccines and antibiotics eradicated it from much of the world by the middle of the last century.

But the Philippines is still estimated to have more than a million cases. “The long-term plan is to eradicate it,” Dr Alena says, adding it’s “impossible in the near future”. She says because of poor access to healthcare people often relapse, and have even begun to develop drug-resistant strains.

Later that morning, a woman brings her young son to the clinic. Pale and listless, the boy slumps on a chair. Dr Alena suspects he has dengue. A few minutes later, it’s confirmed. She prescribes paracetamol, and tells his mother to keep him hydrated.

Dengue is new here. The one case in January turned to 10 by March even as Dr Alena and her team sprayed school grounds to kill the mosquitoes that spread it, and handed out treated nets.

By 11:00 the doctor is extricating herself from the growing line of patients. They will have to be dealt with by her capable nursing staff because she has to get across to Diit, 40 minutes away by boat.

It is more beautiful than Agutaya, but poorer. It has no electricity or a mobile phone tower, and only one concrete road that runs out after a few hundred metres.

The arrival of the “medicine lady” as Dr Alena is fondly called is greeted with much excitement. Dozens of school children come running down the beach. They’ve been given the day off so Dr Alena’s dengue control team can spray their school grounds with insecticide. As she walks through the village, she’s like the pied piper, with a long stream of laughing children following.

She visits an elderly couple sitting outside their house along the beach in wheelchairs. Both have had strokes and are partially paralysed. She checks his blood pressure – 150 over 90. “It’s high, but acceptable for his age,” she says.

Dr Alena treats a boy with a hernia

BBC/Virma Simonette

A woman in her 40s pushes her way through the crowd that has gathered around. She is carrying a boy, who is perhaps five or six years old. Dr Alena tells her to sit down on a chair and begins to examine the child. He has a hugely enlarged left testicle. The torch reveals a hernia in his lower abdomen. A part of his intestine has penetrated the bowel wall, pushing into his testicles.

“He will need surgery,” Dr Alena tells the mother. The hope in the women’s eyes turns to anxiety.

Dr Alena asks her if she knows anyone who she can stay with on one of the bigger islands. Yes, the woman says – in Culion, a 12-hour boat ride away.

“Once I tell them they need to have an operation, you see in their faces the fear and the sadness because they realise there isn’t any medicine I can give them to cure this,” Dr Alena says. “You see in their minds [the thought] how are they going to afford this? It’s hard being the one to deliver the news.”

In another part of the world, a hernia is a minor medical procedure. But here it can wipe out a family’s savings, leaving them in debt for years.

“If we could make travel easier that would make a lot of difference,” she adds. “But that’s hard because it will take a lot of resources.”

After three years on the island, Dr Alena’s optimism and ambition have given way to the disheartening realisation that resources – or money – will always be the biggest challenge.

Paradise lost

A concrete all-weather road runs along the base of the rocky hills that circle the main island of Agutaya. Construction began alongside campaigning for the local election last year. One lane was finished before election day, but islanders say work stopped after that. There is no second lane yet.

“We’ll have to wait for the next elections to get the road finished,” quips one local.

A church in Agutaya

BBC/Virma Simonette

On the other end of the island, rusting steel bars stick out of an incomplete concrete structure that is gradually being overrun by vegetation.

It was supposed to be the new rural health unit, Dr Alena says. Work stopped last year because the local government ran out of money. “But they haven’t completed their part of the deal,” she says, her frustration palpable.

Philippine politics is not driven by parties, but personalities, and dominated by large, powerful clans whose chiefs promise resources from Manila in return for votes. As one local woman put it, Agutaya is too small a community: “There aren’t enough votes here that make it worth the money.”

Local politicians have little incentive to change and come election time, vote-buying is common enough that it now seems to have a well-worn price: 500 pesos, or $28 (£22). Corruption runs deep, and the money pouring in doesn’t seem to reach its destination.

“I came here very idealistic,” Dr Alena says, sighing. “I was very aggressive to try and change the way the local health system worked. But then as time goes on you realise that three years is far too short to make any big changes.”

As her time on Agutaya – a three-year-contract – drew to an end, many islanders told her they would be sad to see her go. “Time flies fast,” said Ricardo, one of the senior nursing assistants, who described her as “selfless and hardworking”.

Dr Alena Yap

BBC/Virma Simonette

But in the weeks since returning to Manila, Dr Alena says she has felt disappointed and even cynical about her experience working for local government. She was offered a job at the provincial health administration in Palawan but turned it down. Instead she wants to work in a medical charity or NGO.

Last week, she returned to Agutaya as part of an NGO-run programme with a group of specialist doctors who visit once a year to do minor surgeries.

But this time it didn’t take her two-and-half days. Dr Alena and the other doctors arrived there three hours after taking off from Manila – they touched down on a runway in the luxury island of Amanpulo in a private plane funded by international donors.

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Commentary: Anwar Ibrahim’s struggle for economic rejuvenation in Malaysia

POLICY STANCE ON GOVERNMENT SPENDING NOT SUSTAINABLE

Politics aside, economic headwinds remain Mr Anwar’s most serious challenge. 

Once one of the region’s budding tiger economies, Malaysia has fallen to fifth place among the economies in the Association of Southeast Asian Nations (ASEAN). It has been overtaken by Vietnam that ranks in the top four together with Indonesia, Thailand and Singapore.

The effects of the continuing global slowdown showed up starkly in the country’s export performance, which contracted 17.4 per cent year-on-year in April.

Bank Muamalat’s chief economist Mohd Afzanizam Abdul Rashid forecasts that overall exports this year could decline by 9 per cent, compared with a 25 per cent growth in 2022. “This will leave domestic demand as the main economic driver for overall growth,” he said.

Economists noted that domestic demand, made up by government spending and private consumption, has accounted for more than 70 per cent of GDP since 2019. 

But this growth option is no longer sustainable. Malaysia is now suffering a serious financial hangover for the spending binge, with government debt ballooning to 1.08 trillion ringgit at end-2022, almost doubling in six years.

“The policy stance of government spending is no longer sustainable, and Malaysia needs a new economic narrative,” Sunway University’s Professor Yeah Kim Leng, who sits on a five-member panel advising Mr Anwar on financial matters, told CNA.

“The new path must feature shifting the economy to more value-added production driven by attracting technology intensive industries that will in turn boost wages,” added Prof Yeah.

Leslie Lopez is a senior correspondent at CNA Digital who reports on political and economic affairs in the region.

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China, US move closer to high-level official talks

The China and the United States governments are getting closer to resuming high-level dialogue as media reported that US Secretary of State Antony Blinken will visit Beijing within several weeks, or as soon as next week.

CNN reported on Tuesday that Blinken will travel to China in the coming weeks. Politico reported on Thursday that his trip may occur next week.

Beijing has so far refused to comment on Blinken’s itinerary. It said the US and China should maintain dialogue but Washington must show sincerity and stop “saying one thing but doing another.”

Some Chinese commentators said it shouldn’t be surprising if Blinken visits Beijing, given that there have been several rounds of talks between US and Chinese officials over the past month. But they said Beijing will have limited expectations for meetings with US officials.

If confirmed, Blinken’s trip will mark the highest-level visit of a US official to China since then-Secretary of State Mike Pompeo visited the country in 2018. It will show an easing of Sino-US political tensions, which have been heightened by the Chinese balloon incident in late January.

Due to rising hopesof a bilateral thaw between the world’s two largest economies, the Dow Jones index has increased 258 points, or 0.8%, to 33,833.61 on Wednesday and Thursday. The Shanghai Composite index has also surged by 31 points, or 1%, to 3,231.41 on Thursday and Friday.

Choosing sides  

On Friday, the Chinese foreign ministry called on all US diplomats to implement Blinken’s promise that Washington will not require other countries to choose sides between the US and China. 

“We hope US diplomatic missions around the world will truly treat other countries’ development of relations with China with an open and inclusive attitude, stop suppressing Chinese companies including Huawei Technologies everywhere, stop coercing allies to restrict chip exports to China, stop luring other countries to give up their cooperation with China and stop spreading false information such as ‘China’s debt trap’,” Wang Wenbin, a foreign ministry spokesperson, said in a regular media briefing on Friday.

US President George Washington. Photo: Wikimedia Commons

To describe the Sino-US relations, Wang used a quote from the first US president, George Washington, who said, “A slender acquaintance with the world must convince every man that actions, not words, are the true criterion of the attachment of friends.”

“We care about what the US says, but we care even more about what actions it takes,” he said.

Prior to this, Wang said on Wednesday that China and the US should maintain necessary communication but the responsibility for the current challenges facing China-US relations does not lie with China.

“The US needs to respect China’s core interests and major concerns, stop interfering in China’s internal affairs, stop harming China’s interests, and stop calling for communication on the one hand and making provocations on the other,” he said.

On Thursday, Blinken told the media during his visit to Saudi Arabia that the US is not asking anyone to choose between Washington and Beijing. He said Washington is only trying to demonstrate to other countries the benefits of having a partnership with the US. 

Last December, China and Saudi Arabia signed a series of strategy deals, including one involving Huawei, during Chinese President Xi Jinping’s three-day visit to Riyadh. On March 10, Saudi Arabia and Iran agreed to reestablish diplomatic relations and reopen embassies after years of tensions. Chinese media said Beijing had contributed to the talks between Saudi Arabia and Iran.

‘De-risking’ plan

On May 20, G7 leaders said in a joint statement that they have a common interest in preventing a narrow set of technological advances from being used by some countries to enhance their military and intelligence capabilities to undermine international peace and security. 

They said G7 countries are not decoupling with China but they also recognize that economic resilience requires “de-risking and diversifying.”

On Tuesday, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a network of seven individuals and six entities in Iran, China and Hong Kong in connection with Iran’s ballistic missile program. 

“As a Chinese saying goes, ‘Good faith makes good things happen.’ Dialogue should be based on mutual respect and aim for real results,” Xie Feng, China’s Ambassador to the US, told the American business community during an event of the US-China Business Council on Wednesday. 

“It surely is not the right way to seek dialogue and cooperation while putting the other on the sanction list,” he said. “Dialogue conducted only for its own sake will not work either. Saying one thing but doing another could only bring unintended results.”

“For high-level interactions, whole-process management is essential – fostering a good atmosphere in advance, accumulating outcomes in the process, and delivering on them afterwards,” he said.

He added that to many Chinese people, the word “de-risking” may be just another name for “decoupling.” He said the US should not use national security as an excuse for protectionism.

Diao Daming, an associate professor at the Renmin University of China in Beijing, told the Global Times on Wednesday that the US is trying to test China’s reaction to Blinken’s potential visit through media hype and is trying to shape its own image as a promoter for communication.

He said the series of actions recently taken by the US reflects Washington’s duplicity and self-contradiction.

China’s demands

In April, media reported that US President Joe Biden would sign an executive order to restrict US companies and private equity and venture capital funds from investing in China’s microchips, artificial intelligence, quantum computing, biotechnology and clean energy projects and firms. But there has been no update so far.

On May 8, China’s Foreign Minister Qin Gang met with US Ambassador to China Nicholas Burns in Beijing. On May 11, top Chinese diplomat Wang Yi and US National security adviser Jake Sullivan met in Vienna. On May 25, China’s Commerce Minister Wang Wentao met with US Secretary of Commerce Gina Raimondo in Washington, DC. The three meetings were described by both sides as candid and constructive.

On May 8, 2023, State Councilor and Foreign Minister Qin Gang met with US Ambassador to China Nicholas Burns in Beijing. Photo: Chinese Foreign Ministry

“Proven by the three meetings, the tensions between the US and China have eased over the past one month,” a Guangdong-based commentator writes in an article published on Friday. “If US officials have to visit China, there is no harm for Chinese officials to meet them.”

“But when Blinken visits China, the Chinese government should issue an official warning to the Biden administration that if it continues to cross China’s red line over Taiwan issues and take extraordinary actions, the responsibility of shaking the Sino-US relations or causing military conflicts in the Western Pacific region will lie with the US,” the commentator says.

He says the Biden administration has not cancelled the extra tariffs and sanctions imposed on China but hopes that China will continue to buy US food, natural gas, airplanes and semiconductors, instead of purchasing goods from Brazil, Russia and France. He says Beijing must tell Americans that China will not purchase goods from countries that hurt its interest.

He adds that Blinken should answer why the Russian-Ukrainian conflicts have shown signs of spillover, which is bad news for Europe. He says problems will be resolved only if the US is willing to work with China.

Read: US-China trade talks end in more chip war salvos

Read: With Micron ban, China says no to ‘de-risking’

Follow Jeff Pao on Twitter at @jeffpao3

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